Lloyd's and China Taiping have signed a memorandum of understanding (MoU), marking a significant level of co-operation.
The agreement was signed on Wednesday 21 October by John Nelson, Lloyd’s chairman and Wang Bin, chairman of China Taiping during his visit to Lloyd’s to coincide with President Xi Jinping’s State visit to the UK.
The memorandum demonstrates a commitment from both sides to establish a broader and closer relationship, including deepening mutual collaboration and support for Chinese enterprises internationally.
The agreement comes at a time of increasing bilateral trade relations between Britain and China.
According to the MoU, Lloyd’s and China Taiping will commit to achieve complementary and collaborative development of local and global markets.
Lloyd’s will help China Taiping to expand its global business network by supporting Taiping Reinsurance Company’s initiative to become a member of Lloyd’s and establish a Lloyd’s syndicate as well as Taiping Reinsurance Brokers initiative to become a Lloyd’s registered broker.
China Taiping will support Lloyd’s in developing and expanding its business with Chinese interests. The two sides will also commit to sharing knowledge and expertise and cooperating on training and talent development.
Wang said: “The global business characteristics are the essential part of the top priorities of China Taiping. China Taiping is a comprehensive insurance group with the longest history in overseas operations and the richest experience in internationalisation among the state-owned insurance enterprises.
“The establishment of the cooperative relationship with Lloyds’ is a significant strategy for China Taiping to elevate its internalisation and build its industrial chain, strengthen its reinsurance business capability, and expand overseas business network.
"Through the cooperation with Lloyd's, China Taiping will further integrate its resources in both domestic and overseas markets, in both direct business and reinsurance, in both renminbi and foreign exchanges, in both P&C and life insurances. Furthermore, China Taiping will improve its ability in the implementation of Chinese enterprises going global and the Belt and Road Initiative.”
Nelson added: “I am delighted to welcome China Taiping Insurance to Lloyd's today and pledge our commitment to building a strong and lasting business relationship in the future.
“For centuries Lloyd's has been the global hub for specialist insurance and reinsurance and by seeking out new business partners and further internationalising our capital base, our aim is to reinforce our global position.
Nelson also said that China is an important part of Lloyd's future strategy and that the MoU will allow the firm to “deepen our understanding of the market and improve the support we are able to provide, as well as having the mutual benefit of sharing respective knowledge and expertise.”
He added: “The strategic and cooperative relationship set out in the memorandum will support the risk management of Chinese companies looking to expand internationally. It will help Chinese insurers and reinsurers to tap into global markets and give them access to expertise from different locations.”